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News from the Import Industry

April 30, 2008

Samsung to outsource some work to China's TCL

SEOUL, April 29 (Reuters) - Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research), the world's top maker of liquid crystal display (LCD) panels, said on Tuesday it would outsource the assembly of some modules to Chinese television maker TCL Corp 000100.SZ.

"Production of the modules is scheduled to start in 2009," a Samsung spokeswoman said.

She declined to disclose the size of the deal but said it was Samsung's first overseas LCD contract manufacturing deal. The spokeswoman denied local media reports that TCL could use some of the assembled modules to make its own television sets.

Samsung owns module assembly plants in China and Slovakia.

Officials at TCL could not be immediately reached.

Samsung last Friday reported strong quarterly earnings, with the LCD-making display division unit posting better-than-expected profits. The company announced it would invest in a new LCD panel line in South Korea to satisfy worldwide demand for flat screens.

(Reporting by Marie-France Han; Editing by Anne Marie Roantree)

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